Jonnagiri Gold Mine Opens as India First Commercial Private Project
Andhra Pradesh Chief Minister N Chandrababu Naidu and Lloyds Metals & Energy Chairman B Prabhakaran inaugurated the Jonnagiri Gold Mine on Wednesday, launching India’s first commercial-scale private-sector gold mining operation since Independence. Located in Kurnool, the site positions the state to become a major domestic gold production hub.
Key Takeaways
- First Private Commercial Gold Mine: Marks India’s initial post-Independence private commercial-scale gold mining initiative.
- Significant Investment: The project spans 598 hectares across Kurnool district with a funding of over Rs 400 crore.
- Production Targets: Peak capacity targets 1,000 kg of refined gold annually over an estimated 15-year operational life.
- Economic Strategy: Aims to reduce India’s heavy reliance on foreign gold imports amid record-high global prices.
Managing Director and Chairman of Lloyds Metals & Energy, B Prabhakaran, and Andhra Pradesh Chief Minister N Chandrababu Naidu on Wednesday jointly inaugurated the Jonnagiri Gold Mine in Kurnool district, marking the start of India’s first commercial-scale private-sector gold mining operation since Independence.
According to a company release, the mine, located across Jonnagiri, Erragudi and Pagidirayi villages in Tuggali mandal, is a major step towards strengthening India’s domestic gold production capabilities at a time when the country remains one of the world’s largest consumers of the precious metal.
Jonnagiri brings commercial-scale gold mining back into focus.
Developed by Geomysore Services India Pvt Ltd and backed by Lloyds Metals & Energy and the Thriveni Group, the project has attracted investments of more than Rs 400 crore and spans nearly 598 hectares.
The mine is expected to produce up to 1,000 kg of refined gold annually at peak capacity and has an estimated operational life of around 15 years. Certified gold resources currently stand at about 13.1 tonnes, while ongoing exploration indicates the possibility of larger resources across the broader mineralised belt, the release said.
India imports between 700 and 1,000 tonnes of gold every year to meet domestic demand. The company said the Jonnagiri project would help bring commercial-scale gold production back into focus and support efforts to reduce dependence on imports.
Speaking at the inauguration, Prabhakaran said, ‘Jonnagiri Gold Mine marks the beginning of a new chapter for India’s gold mining industry. For decades, India has been one of the world’s largest consumers of gold while remaining heavily dependent on imports. Today, we are demonstrating that India can discover, develop and operate world-class gold mining assets at a commercial scale.’
‘Our vision extends beyond a single project. We aim to build a sustainable domestic gold ecosystem that supports economic growth, generates employment, contributes to national resource security and positions ‘Made in India’ refined gold in both domestic and international markets. Jonnagiri is a true testament of ‘Atmanirbhar Bharat’ towards creating a portfolio of globally competitive gold mining assets in the country,’ he added.
The inauguration comes at a time when gold prices are at record highs and volatility in global markets remains elevated. The company said the development of a domestic source of gold is both commercially and strategically important for India.
According to the release, the project is expected to generate employment opportunities, support local businesses and contribute to the regional economy through investments, royalties and taxes.
The mine is also expected to encourage further exploration and investment in India’s gold sector. With additional exploration activities underway in the region, Andhra Pradesh is well placed to emerge as a leading gold-producing state, the release said.
As commercial production begins, the Jonnagiri Gold Mine is expected to strengthen India’s domestic gold value chain and support the vision of bringing ‘Made in India’ gold to both domestic and international markets.
Future Outlook
The launch of the Jonnagiri infrastructure sets a precedent for private entry into the Indian mineral extraction sector. Ongoing exploration across the surrounding mineralised belt indicates potential to expand the certified 13.1-tonne resource baseline, potentially transforming Andhra Pradesh into a critical hub for domestic mineral security.
FAQs
Where is the Jonnagiri Gold Mine located?
The gold mine is situated across the Jonnagiri, Erragudi, and Pagidirayi villages within the Tuggali mandal of Kurnool district in Andhra Pradesh.
Who are the primary developers behind the Jonnagiri project?
The project was developed by Geomysore Services India Pvt Ltd, with financial and operational backing from Lloyds Metals & Energy and the Thriveni Group.
What is the expected annual gold production from the mine?
At peak capacity, the facility is designed to produce up to 1,000 kg of refined gold every year, drawing from an estimated reserve base of 13.1 tonnes.
Why is this private gold mining project significant for India?
It represents the first commercial-scale private-sector gold mining operation established in India since Independence, aiming to lower the nation’s reliance on importing 700 to 1,000 tonnes of gold annually.
